Chairman Lee Hak-young of the National Assembly Industry, Trade, and Small and Medium Enterprises Committee held a meeting on July 27 at 2 p.m. in the committee chairman's office with Kim Hak-soo, Chairman of the Korea Unmanned Security Industry Cooperative, Kim Chan-je (CEO of K-Pole), Choi Seok-bae (Auditor, CEO of WatchCop), and Eom Yeon-ok (CEO of Samgyeong) to discuss the designation of small and medium enterprise competitive products (hereinafter SME competitive products) in the unmanned security industry.
The representatives of small and medium unmanned security companies attending the meeting explained the desperate survival environment, stating that the current unmanned security market in Korea is a typical oligopoly dominated by two large companies, S-1 and Caps, which hold 90% of the public market. They also noted that the number of small and medium unmanned security companies, which once numbered around 200, has halved in just 10 years. Furthermore, they emphasized the difficulties faced as the extension of the SME competitive product designation, first established in 2019, is facing opposition from large corporations.
Additionally, although contracts should be made with small and medium security companies under the SME competitive product designation, some public officials at demand institutions insist on maintaining existing contracts with large corporations, thereby violating the public procurement system. They appealed for active promotion and support from government agencies against actions that contravene laws and government policies.
Chairman Lee Hak-young stated that through today’s meeting, he was able to fully understand the reality of the large corporation S-1 (a Japanese Secom trademark) and the difficulties faced by small and medium security companies. He particularly agreed on the necessity of SME competitive products for items dominated by large corporations.
He also said that they will examine why the two large oligopolistic companies, S-1 and Caps, oppose the designation of competitive products, and if opposition continues, they will consider holding a forum at the National Assembly where small and medium security companies, large corporations (S-1, Caps), and the government’s relevant departments can come together to find solutions.
Furthermore, he promised to strive to educate public officials in government offices and public institutions to ensure that they purchase products from small and medium security companies in accordance with the purpose of the SME competitive product designation, without violating the public procurement system.
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